· Consolidated net revenues for the second quarter of 2014 amounted to SEK
1,301 M (1,152).
· Operating earnings (EBIT) amounted to SEK 372 M (301). The operating
earnings include positive revaluations of purchased debt portfolios amounting to
SEK 23 M (6).
· The operating margin was 29 percent (26), including revaluations of
purchased debt portfolios.
· Net earnings for the quarter amounted to SEK 252 M (206) and earnings per
share were SEK 3.23 (2.57).
· Disbursements for investments in purchased debt amounted to SEK 537 M (597).
· Cash flow from operating activities amounted to SEK 570 M (530).
Comment by President and CEO Lars Wollung
Intrum Justitia performed well during the second quarter 2014. Consolidated
revenues rose by 13 percent and operating earnings, adjusted for revaluations of
purchased debt portfolios and currency effects, increased by 14 percent compared
with the year-earlier period. Earnings per share have risen 28 percent over the
past 12-month period, which is well above our financial target of a 10-percent
annual increase. In the second quarter we also strengthened our long-term
financial flexibility by issuing bonds of SEK 1 billion, as well as by improving
several of the terms for our bank financing.
As in the first quarter, the Western Europe and Central Europe regions
experienced healthy growth in the second quarter. We are seeing a strong trend
within purchased debt in Central Europe, while Western Europe has performed well
primarily within Credit Management. Northern Europe has also improved its result
compared with the year-earlier period, largely owing to revaluations of
purchased debt and through enhanced cost efficiency.
Our Financial Services line continues to perform well as a consequence of
increasing levels of investment for purchased debt over the past few years, with
revenues excluding currency effects rising by 16 percent in the second quarter.
Good collections and positive revaluations during Q2 generated a return on
purchased debt of 21 percent. The level of investment for purchased debt totaled
SEK 537 M for the second quarter. Investments for the first half of 2014 were 19
percent down on the year-earlier period, which was very strong. The Credit
Management service line saw an improvement in revenues and profitability
compared with the year-earlier period, chiefly due to contributions from
acquired units and increased volumes from our own portfolios. Within Credit
Management we focus our efforts on improving collection efficiency and boosting
growth from external clients.
We are continuing to develop services involving financing solutions before
receivables mature, or in connection with their maturing. This business is a
small part of the Group at present, but has good long-term potential to grow and
strengthen our existing business. Swedish and Finnish factoring operations
developed as planned. Our initiative in the Netherlands to offer a financing
solution for e-trade has had a disappointing performance and we are therefore
investigating other alternatives for this operation. To improve cost efficiency
and strengthen cooperation with our other organization we have also included the
operations for financing solutions before an invoice matures within the existing
Presentation of the Interim Report
The interim report and presentation material are available at
www.intrum.com/Investor relations. President & CEO Lars Wollung and Chief
Financial Officer Erik Forsberg will comment on the report at a teleconference
today, starting at 9:00 a.m. CET. The presentation can be followed at
www.intrum.com and/or www.financialhearings.com. To listen in to the conference
live, please dial +44 (0) 20 766 020 81 (UK) +46 (0) 8 519 993 65 (SE).
For further information, please contact
Lars Wollung, CEO & President Tel: +46 8 546 102 02
Erik Forsberg, CFO Tel: +46 8 546 102 02
Intrum Justitia is Europe’s leading Credit Management Services (CMS) group,
offering comprehensive services, including purchase of receivables, designed to
measurably improve clients’ cash flows and long-term profitability. Founded in
1923, Intrum Justitia has some 3,600 employees in 20 markets. Consolidated
revenues amounted to about SEK 4.6 billion in 2013. Intrum Justitia AB is listed
on NASDAQ OMX Stockholm since 2002. For further information, please visit
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